Choosing a Vehicle With an Insurance Rate You Can Afford
Written by DriveAxis.ca September 07, 2022
Car insurance is nothing to sneeze at, especially if you live in the Greater Toronto Area. Something as simple as moving a few blocks away from your previous residence can land you in an entirely different insurance bracket, costing thousands of dollars per year in coverage.
For that reason, many people stick to vehicles that won’t blow out the budget with unnecessary insurance costs. Usually, this means sacrificing certain types of vehicles - such as sports cars - in favor of more modest choices. However, that’s not always necessary, as many great vehicles come with competitive insurance rates attached to them.
FACTOR IN THE DETAILS
Depending on who you are, you may be subject to insurance rates that are less, or more than others in your particular demographic. Criteria such as marital status, gender, years of driving experience, and any past auto accidents will factor into your rate. However, there’s a flip side to the equation as well - the vehicle you intend to buy. Some vehicles are naturally more expensive to insure than others, and your personal demographic information will play a role in what kind of rate you get. Typically, the higher a risk you are as a driver, the worse your rate will be if you intend to buy certain types of vehicles.
INSURANCE RATES BY VEHICLE TYPE
There’s no concrete rule when it comes to insurance rates vs. vehicle type, but there are a few general ones to keep in mind. Typically, high-performance sports cars and large sedans tend to see upticks in insurance rates, while minivans and SUVs do not. There are reasons for these discrepancies. Sports cars tend to be driven by people who enjoy the need for speed, which increases their risk of an auto accident, whereas minivans are more utilitarian, and will do little to excite leadfoots.
Similarly, SUVs may be easier to insure because of a list of safety features, not to mention vehicle companies investing a lot of focus and resources on making it their category of choice. For instance, Ford has all-but-abandoned the traditional car market in favor of a laser-focus on the SUV market, making them easier to produce.
EXAMPLES OF VEHICLES WITH GREAT INSURANCE RATES
Typically, cars that refrain from boasting about the latest technology and options packages tend to enjoy lower insurance ratings. After all, there’s less to fix in case of an accident. It’s no secret that less expensive vehicles usually don’t rack up much in the way of insurance costs, but that doesn’t mean you have to go cheap.
Many vehicles with low insurance rates are mid-range affordable, such as the Mazda CX-5, Hyundai Kona and the Honda HR-V. None of these are slouches when it comes to giving drivers a great quality vehicle packed with the latest options and safety features. Speaking of which, cars with robust safety ratings are also favored by insurance companies due to less risk of severe injuries they would need to deal with if representing an at-fault party.
THEFT IS A MAJOR FACTOR
Many people don’t realize that certain vehicles, even those priced rather modestly, still suffer high insurance rates due to theft. It’s a fact that these particular vehicles are targets for nefarious criminals, and that means insurance companies will charge a higher rate to offset the risk of them being stolen. It’s best to research and find out if the criminal underworld has a sweet tooth for your particular vehicle, even if you believe yourself to be at low risk of theft.
Some vehicles high on the theft list in Canada include Ford’s F-line (150 and up), the Toyota Corolla, and the Honda Accord. While these may be affordable vehicles with a straightforward set of options and trim packages, that won’t matter much if they’re being scooped up by thieves on a regular basis.
FREQUENCY OF VEHICLE USE
The more you drive your vehicle, the more your insurance company takes notice. After all, the more time you spend on the road, the greater your risk of getting into anything from a fender bender, to a head-on collision with another vehicle. Many people suffer at least one automobile accident in their lives, and insurance companies understand the risk as well. They will charge accordingly if you spend an exorbitant amount of time behind the wheel.
Of course, this may be necessary to get to-and-from work, in which case it’s advisable to choose a vehicle that won’t tally up insurance rates too high, while still remaining reliable and comfortable during the everyday commute. In other words, don’t plunk down tens of thousands of dollars on a flashy RWD convertible just to attract eyeballs on the highway, or you may end up paying a lot more in insurance than you bargained for.
Auto insurance is a multifaceted affair that requires a lot of research in order to figure out what vehicle is best for you. If you’re willing to spend more than is necessary on insurance to enjoy the vehicle of your dreams (and you can afford it), then the answer is simple. However, if cost-cutting is your forté so that you can save money better spent elsewhere, it’s wise to make sure you’re grabbing the right set of wheels.
Interested in buying a new vehicle, but need help figuring out insurance costs? Contact DriveAxis.ca today, and we’ll help you narrow down a list of great vehicles for you to choose from. Best of all, you won’t suffer sticker shock when you finally shop around for auto insurance!